SECI Pays ₹5.52 Billion for Solar and Wind Power Purchased in November 2021
The nodal agency disbursed a total of ₹6.06 billion for the month
January 25, 2022
The Solar Energy Corporation of India (SECI) disbursed ₹5.52 billion (~$74.13 million) to solar and wind power developers for the power procured in November 2021. The disbursed amount accounted for 91% of the overall amount paid by the nodal agency for November 2021.
SECI disbursed a total of ₹6.06 billion (~$81.4 million) for the month, including solar and wind power purchases, developers’ reimbursement, duties, and other reimbursements.
The monthly payment by SECI is a considerable relief for renewable developers burdened by the unpredictable schedules of distribution companies (DISCOMs) for paying dues.
According to the data released by the Ministry of Power, DISCOMs owed ₹194.52 billion (~$2.61 billion) to renewable energy generators, excluding disputed amount, in overdue payments at the end of December 2021. The amount was 3% lower than ₹200.85 billion (~$2.69 billion) for November 2021.
Under the annuity method, the nodal agency reimbursed ₹108.37 million (~$1.45 million) to solar power developers against Goods and Services Tax (GST) and Safeguard Duty claims.
SECI released ₹1 million (~$13,373) as subsidy for the rooftop solar program and ₹34.60 million (~$462,635) towards transmission charges.
The agency released ₹381.63 million (~$5.10 million) as subsidy under the viability gap funding program and ₹16.68 million (~$223,067) as a payment to contractors and service providers.
It also paid ₹1.63 million (~$21,793) as open access charges.
The agency had disbursed ₹5.21 billion to solar and wind developers for the power purchased in October 2021. The disbursed amount accounted for 96% of the total amount paid by the nodal agency in October 2021.
In August 2021, the Central Electricity Regulatory Commission reiterated SECI’s proposal for a 10.41% discount rate on annuity payments towards the additional expenses incurred by solar power developers on account of ‘Change in Law’ events. The central regulator directed solar power developers to pay all statutory taxes, duties, levies, and cess on monthly annuity payments per power purchase agreements.
Harsh Shukla is a staff reporter at Mercom India. Previously with Indian Express, he has covered general interest stories. He holds a Masters Degree in Journalism from Symbiosis Institute of Media and Communication, Pune.